M&M edges higher in early trade

Mahindra & Mahindra rose 0.78% to Rs 1,336.50 at 9:16 IST on BSE after the company said that Mahindra Two Wheelers and Peugeot Motocycles have completed the necessary formalities for former's 51% acquisition in the latter.

The announcement was made after market hours yesterday, 20 January 2015.

Meanwhile, the S&P BSE Sensex was up 63.19 points or 0.22% at 28,847.86.

On BSE, so far 840 shares were traded in the counter as against average daily volume of shares in the past two weeks.

The stock hit a high of Rs 1,339 and a low of Rs 1,335 so far during the day.

Mahindra & Mahindra (M&M) said that Mahindra Two Wheelers (MTWL) and Peugeot Motocycles (PMTC), part of the Euro 54 billion PSA Group based in France have completed the necessary formalities for MTWL's 51% acquisition in PMTC.

This project was announced on 7 October 2014. The acquisition, which resulted in the satisfaction of all regulatory, legal and financial conditions of the agreement, was completed smoothly by both parties within a very short span of time. As part of the employee dialogue process and Anti-trust law, the Works Council consultation process has also been successfully completed.

Under the terms of the agreement, MTWL has infused Euro 15 million into PMTC to finance projects implemented through the strategic partnership and has also bought shares held by PSA which would allow MTWL to take a 51% stake in PMTC. The new board of PMTC has constituted and would include three members of MTWL and two members of PSA.

PMTC (Peugeot Scooters), a key player in urban mobility in Europe for 116 years, is the oldest motorized two-wheeler manufacturer in the world. Peugeot Scooters offers one of the most comprehensive range of scooters and mopeds, from 50cc to 400cc, including the successful three wheeled scooter -Metropolis - in the European market.

M&M's net profit fell 4.3% to Rs 946.63 crore on 6.8% growth in net sales to Rs 9418.10 crore in Q2 September 2014 over Q2 September 2013.

Mahindra Group enjoys a leadership position in tractors, utility vehicles, information technology, financial services and vacation ownership. In addition, Mahindra enjoys a strong presence in the agribusiness, aerospace, components, consulting services, defence, energy, industrial equipment, logistics, real estate, retail, steel, commercial vehicles and two-wheeler industries.

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